- Average used-car list prices increased by almost $600 in May.
- Certified pre-owned and new vehicles bucked that trend.
- It is becoming more difficult for buyers shopping the lower end of the market.
Many car buyers have been driven to the used market by an extended period of elevated new-vehicle prices, but that migration has made it harder to find affordable pre-owned options. According to data from Kelley Blue Book’s parent company, Cox Automotive, the average used vehicle listing price reached $26,918 in May, a significant increase from the year before and a rise from April’s average of $26,329.
May’s average used-car listing price represented the third consecutive month of above-normal price hikes. Prices likely played a role in the 3.9% decrease in sales volume last month, which came despite improved credit availability for buyers. Vehicles from Chevrolet, Ford, Honda, Nissan, and Toyota made up almost half of the sales volume.
Inventory Rises
Used-vehicle inventory was up slightly last month, reaching 45 days, but the supply of more affordable models was much lower, at 33 days for vehicles priced under $15,000. While there has been evidence of buyers gravitating toward the more expensive end of the spectrum, with nearly new SUVs gaining sales in April, declining inventory of lower-priced vehicles has made it difficult for shoppers looking at affordable used models.
Certified pre-owned (CPO) vehicles bucked the used-car sales decline, posting a 6.1% increase from April, though they were 0.9% lower than in May 2025. CPO sales accounted for 15.7% of overall used sales volume last month, down more than 3% from the same period in 2025.
Interestingly, new-vehicle sales climbed by more than 7% last month. New-car average transaction prices (ATP) decreased slightly in May, and automakers spent more on incentives, likely nudging buyers toward new over used options. New electric vehicle prices also declined for the 11th straight month, pushing them to their best sales month since the end of federal tax credits.
